(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Appropriated money--Money that the legislature
has appropriated through the General Appropriations Act or other law.
(2) Appropriation year--The year that the legal authorization
for the charge was granted by the legislature. Multiple appropriation
year activity may occur within a single fiscal year.
(3) Capital asset--A good other than a consumable that
benefits a state agency during more than one appropriation year.
(4) Comptroller--The comptroller of public accounts
for the State of Texas.
(5) Consumable--A good that perishes with use and that,
under ordinary circumstances, will be entirely used during one appropriation
year.
(6) Institution of higher education--Has the meaning
assigned by Government Code, §2113.205(e)(1).
(7) Internet connection--Access to the Internet under
an interagency contract or a contract with a private Internet service
provider.
(8) State agency--Has the meaning assigned by Government
Code, §2113.205(e)(2).
(9) Telecommunications service--Includes a corded telephone
service, a cellular telephone and/or data service, a pager service,
an Internet connection service, a cable television service, and a
satellite television service. The term does not include a long distance
charge, a prepaid telephone calling card, a cellular telephone roaming
charge, and any other charge that is not imposed monthly as a flat
rate.
(10) Utility service--
(A) electricity, water, natural gas, or propane, if
furnished by a utility;
(B) a telecommunications service; and
(C) a wastewater treatment service, a well water service,
or a waste disposal service, if provided by a utility.
(b) General requirements and exceptions.
(1) The comptroller may require a state agency to make
available to the comptroller the documentation that supports the agency's
classification of a purchase or payment as a consumable, service,
capital asset, or grant.
(2) This section does not apply to the extent it conflicts
with state law, including a valid rider or other provision of the
General Appropriations Act.
(3) This section does not apply to a purchase that
is paid with money that is not appropriated money.
(c) Purchases of consumables.
(1) Except as provided in paragraph (2) of this subsection,
a state agency must charge its purchase of a consumable to the appropriation
year in which delivery of the consumable occurs.
(2) Except as provided in paragraph (3) of this subsection,
a state agency may not charge its purchase of a consumable to a particular
appropriation year if the agency could not reasonably have anticipated
that the consumable would be consumed entirely during that year.
(3) A state agency may charge the appropriation year
that immediately precedes the appropriation year in which a consumable
is delivered for the purchase of the consumable if:
(A) the agency entered into a contract for the consumable
during the immediately preceding appropriation year and, at the time
of entrance into the contract, the agency reasonably anticipated that
the consumable would be delivered during that year;
(B) delivery of the consumable was delayed until the
next appropriation year for reasons beyond the agency's reasonable
control; and
(C) the order quantity was no more than reasonably
could have been consumed before the end of the immediately preceding
appropriation year had delivery occurred as originally anticipated.
(d) Purchases of services.
(1) A state agency must charge its purchase of a service
to the appropriation year in which the service is rendered.
(2) A state agency must prorate its payments under
a contract that is performed over more than one appropriation year
so that each appropriation year is charged only for the services that
are rendered during that year.
(e) Purchases of capital assets.
(1) Except as provided in paragraphs (2) - (3) of this
subsection, a state agency must charge its purchase of a capital asset
to the appropriation year in which the agency enters into a valid
contract for the purchase. The signing date of a validly executed
contract is the determining factor, the delivery date of the asset
is irrelevant.
(2) A state agency may contract during a particular
appropriation year for the purchase of a capital asset in reliance
on an existing appropriation for a subsequent appropriation year within
the following biennium so long as payment for the asset does not occur
before the start of the subsequent year.
(3) A payment under a lease-purchase agreement must
be charged to the appropriation year in which the payment is made.
(f) Grant payments.
(1) A state agency's payment of a grant to an individual
or entity must be charged to the appropriation year in which the agency
contracts, awards, or otherwise legally commits to pay the grant if
an appropriation for that year and purpose is available. Otherwise,
the payment must be charged to the first appropriation year for which
an appropriation is available.
(2) This subsection applies regardless of how the grantee
will use the grant money.
(3) This subsection applies even if the payments under
a grant contract will be made over more than one appropriation year.
(g) Contracts for the purchase of a combination of
consumables, services, and capital assets.
(1) This subsection applies only to:
(A) a contract that involves the purchase of two or
more of the following: a consumable, a service, or a capital asset;
or
(B) two or more closely related contracts that together
involve the purchase of two or more of the following: a consumable,
a service, or a capital asset.
(2) If the dominant purpose of one or more contracts
is to purchase a consumable, then subsection (c) of this section governs
the determination of the correct appropriation year to charge for
the purchases.
(3) If the dominant purpose of one or more contracts
is to purchase a service, then subsection (d) of this section governs
the determination of the correct appropriation year to charge for
the purchases.
(4) If the dominant purpose of one or more contracts
is to purchase a capital asset, then subsection (e) of this section
governs the determination of the correct appropriation year to charge
for the purchases.
(h) Purchase options. The appropriation year in which
a state agency exercises a contractual option to purchase a good,
a service, or a capital asset must be charged for the cost of exercising
that option, subject to this section's requirements for determining
the correct appropriation year to charge for the purchase.
(i) Periodical subscriptions, maintenance contracts,
post office box rentals, insurance, Internet connections, and surety
or honesty bonds.
(1) A state agency may use money that is appropriated
for a particular appropriation year to pay the entire cost or amount
of a periodical subscription, a maintenance contract, a post office
box rental, insurance, an Internet connection, or a surety or honesty
bond, regardless of whether the subscription, contract, rental, insurance,
connection, or bond covers more than one appropriation year.
(2) This subsection prevails over subsections (c) -
(h) of this section to the extent of any conflict.
(j) Utility services.
(1) A state agency may use money that is appropriated
for a particular appropriation year to pay for a utility service that
is provided during that appropriation year and September of the next
appropriation year.
(2) This subsection prevails over subsections (c) -
(h) of this section to the extent of any conflict.
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